Printer Friendly

FIELDCREST CANNON, INC. SELLS CARPET AND RUG DIVISION

 NEW YORK, June 3 /PRNewswire/ -- Fieldcrest Cannon, Inc. (NYSE: FDL) announced today that it has agreed to sell to Mohawk Industries, Inc. (NASDAQ-NMS: MOHK) substantially all of Fieldcrest's Carpet and Rug Division for approximately $140 million in cash. Fieldcrest expects to receive after-tax cash proceeds of $119 million.
 Fieldcrest's Carpet and Rug Division manufactures woven and tufted carpets and rugs under the Karastan and Bigelow brand names which are sold to the residential and commercial floor covering markets. Products include broadloom carpets, contemporary area rugs and oriental design rugs. The Division has 10 manufacturing facilities. In 1992, the Carpet and Rug Division reported sales of $235.5 million.
 James M. Fitzgibbons, Fieldcrest's chairman, stated: "The management of the Carpet and Rug Division has done an excellent job repositioning Karastan Bigelow into a profitable business. However, for the business to continue growing, we feel that it is in the best interests of the Division to align itself with a larger player who can commit the necessary resources to expanding the business."
 Fieldcrest's management indicated that the sale of the Carpet and Rug Division will enable the company to direct resources to its higher margin Bed and Bath operations and will provide the company with additional financial flexibility. "Mohawk's purchase of Karastan Bigelow will allow us to focus our energies on Fieldcrest's core businesses," said Fitzgibbons.
 Fieldcrest Cannon, Inc. manufactures and markets bed and bath products under the Fieldcrest, St. Marys, Cannon Royal Family, Cannon Monticello and private brand labels. The company's 1992 sales totaled more than $1.2 billion. Fieldcrest was advised on the sale by The First Boston Corporation.
 Mohawk is a leading producer of woven and tufted broadloom carpet for residential and commercial markets.
 -0- 6/3/93
 /CONTACT: J.J. Riley, President-Carpet & Rug Division, or T.R. Staab, Vice President-Finance, both of Fieldcrest Cannon, Inc., 919-627-3117/
 (FDL MOHK)


CO: Fieldcrest Cannon, Inc.; Mohawk Industries, Inc. ST: North Carolina IN: TEX SU: TNM

JM -- CH005 -- 4839 06/03/93 09:42 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 3, 1993
Words:333
Previous Article:FAMILY DOLLAR REPORTS SALES FOR THE MONTH OF MAY, AND FOR THE THIRD QUARTER
Next Article:MORE THAN FOUR OUT OF TEN WORKING WOMEN WOULD TAKE FULL TIME OFF UNDER FMLA TO CARE FOR NEWBORN OR ILL PARENT, BNA POLL FINDS
Topics:


Related Articles
MOHAWK INDUSTRIES ANNOUNCES AGREEMENT TO ACQUIRE AMERICAN RUG CRAFTSMEN
MOHAWK INDUSTRIES ANNOUNCES AGREEMENT TO ACQUIRE CARPET AND RUG DIVISION OF FIELDCREST CANNON
FIELDCREST CANNON COMPLETES SALE OF CARPET DIVISION
MOHAWK INDUSTRIES ANNOUNCES CONSUMMATION OF ACQUISITION OF FIELDCREST CARPET AND RUG DIVISION
MOHAWK INDUSTRIES ANNOUNCES RECORD THIRD QUARTER AND NINE MONTHS EARNINGS
Beaulieu sets Olympic-theme rug line to go with bedding.
Fast dry at DuPont: says new rug fiber beats all others.
Fieldcrest increases heft in bath rugs.
Nourison's new deal: Court of Versailles.
PRINTED ACCENT RUGS CROSS OVER TO BATH: SUPPLIERS USE A VARIETY OF MEANS TO CREATE PATTERNS.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters